6 best CBD firms emerging as market leaders

Labelled decades ago as promoting addiction and abuse, cannabis has become the symbol of hope for many who suffer from different illnesses and pains today — whether physically or mentally.

A January 2017 study by the National Academies of Sciences, Engineering, and Medicine reports on the health effects of marijuana and products derived from it. It summarises the current evidence on both therapeutic and harmful effects and recommends research to be done to develop a comprehensive understanding of the health effects of marijuana. It also suggests steps in overcoming regulatory barriers that may make it difficult to intensively study marijuana’s health effects.

The “miracle” plant has gone to the extent of seeding the possibility of finally finding a cure for cancer.

Although the US Food and Drug Administration (FDA) has yet to receive solid evidence on the medicinal component of cannabis, some states have given their nod for its commercial use due to certain health purposes. The widening acceptability of cannabis serves a basis for the bullish growth forecast of Hemp Business Journal on the CBD industry. The group said it expects the CBD market to evolve into a US$2.1 billion (AU$2.71 billion) market in consumer sales by 2020 with US$450 million (AU$580.43 million) of these sales coming from hemp-based sources. This equates to a 700 percent surge from 2016 levels.

In 2015, the market for consumer sales of hemp-derived CBD products stood at US$90 million (AU$116.09 million). Add to this the US$112 million (AU$144.46 million) revenues generated from marijuana-derived CBD products that year, the cannabis industry in 2015 is then pegged at US$202 million (AU$260.55 million).

Projections like these propelled several business players to get a share of the rapidly growing market. Here are five CBD companies positioning themselves as market leaders in their respective sectors:

1. NightFood Holdings, Inc. (OTCMKTS:NGTF)

Estimated to have a market cap of US$4.715 million (AU$6.08 million), NightFood offers a line of healthy food products best for those who are trying to maintain their weight.

In November 2017, the firm announced a joint venture with Player's Network Inc in a bid to innovate its night-time products with a touch of CBD. The ingredient is a perfect choice for the firm’s plan to sell products that promote better sleep as it has been treated as a sleeping pill sans the negative effects some pills today are accompanied with.

Shares of NightFood began jumping at 25 percent since then. It currently trades at US$0.1551 (AU$0.20) apiece.

2. PotNetwork Holding, Inc . (OTCMKTS:POTN)

PotNetwork Holding is a publicly traded company headquartered in Florida and is tagged as one of the top firms leading the CBD industry revolution.

Just this week, the company announced the success of its subsidiary, Diamond CBD, in the launch of its newest product line, Meds BioTech. PotNetwork CEO Dr Richard Goulding expects the new line to make consumers more aware of the company, eventually driving sales for this year.

The new set of CBD-based products is created to target health-conscious consumers as Diamond CBD focuses on marketing and distribution into distribution channels centred on health such as vitamin shops, health product stores, gyms, chiropractic clinics and physicians offices, which the company regards as a new industry sector for the distribution of its products.

Diamond CBD focuses on the research, development, and marketing of premium hemp extracts with a broad range of cannabinoids and natural hemp derivatives. It boasts a wide array of products such as gummies, oils and vape liquids, among others, as being rich in CBD — about seven times that of its competitors.

3. Trimax Corporation (OTCMKTS:TMXN)

Trimax and its subsidiary Saavy Naturals Inc. are slowly making a name in the industry by incorporating CBD in the fast-growing cosmetic and personal care market. Saavy offers luxury quality moisturisers, lotions, soaps and hair products that are rich in vitamins and boosted by the therapeutic elements of CBD.

Medical benefits aside, CBD has also been found to contain high levels of fatty acids and anti-inflammatory properties, making it an effective remedy for itchy and dry skin. Its sebum-reducing power also makes it the perfect solution to acne-prone skin.

On Jan. 25, Trimax announced its plans to add premium CBD-infused body and hair care products to its already successful hemp body care line in the first quarter of 2018.

Saavy Naturals was formed by the couple Hugo & Debra Saavedra, who both have deep experience in the food cultivation and service industry. Hugo Saavedra, the CEO of Trimax Corporation and Saavy Naturals Inc., said the company is hoping to capture its fair share in the “exceeding popular and fast-growing niche industry.”

4. Vapor Group, Inc. (OTC Pink: VPOR)

Vapor Group may be one of the newest companies in the CBD market, having recently formed its CBD-dedicated subsidiary Royal CBD, Inc. The firm sources products directly from third-party manufacturers and said to have existing major customer-resellers of CBD products.

Vapor Group said it is banking on its CBD-selling subsidiary and accelerating sales of its top-selling herb crusher, EasyGrinder™, as pushing its revenues further upward. As such, it sold the intellectual property of its subsidiary, Simple Cork, the developer of a new, multi-nationally patented combination wine bottle cork/opener to focus on Royal CBD, EasyGrinder and its new crypto mining business CryptoTechCurrency, Inc.

5. GW Pharmaceuticals plc (NASDAQ: GWPH)

GWPH is a biopharmaceutical company focused on discovering, developing and commercialising cannabinoid-based medicines. It commercialised the world's first plant-derived cannabinoid prescription drug, Sativex®, which addresses spasticity caused by multiple sclerosis.

In December 2017, GWPH announced the completion of the submission of a New Drug Application (NDA) to the US Food and Drug Administration (FDA) for Epidiolex®, its flagship CBD-based product.

The product is being formulated to treat rare and catastrophic forms of childhood-onset epilepsy. The company is also undergoing several clinical trials to develop the product as a treatment for severe, treatment-resistant epilepsy syndromes such as Dravet syndrome, Lennox-Gastaut syndrome, and Tuberous Sclerosis Complex and Infantile Spasms.

GPWH is estimated to have a market cap of about US$3.181 billion (AU$4.10 billion), and its current share price is at US$125.57 (AU$161.97) per piece.

6. Ubiquitech Software Corp. (OTCMKTS:UBQU)

Also worth mentioning is Ubiquitech Software Corp (UBQU). Ubiquitech’s subsidiary HempLifeToday has been recently included in Forbes’ list of top five hemp CBD companies in the world. To be included in the rankings is considered an impressive feat because a company must have high annual product sales, with sale projections in the next three years required to reach US$1 billion (AU$1.29 billion).

HempLife Today’s main offer is CannazALL, which highlights the many benefits, albeit largely unknown, of cannabis. The company is focusing on online sales to further widen market reach. As more US states legalise marijuana for medical and recreational use, more physical shops and online stores are set to open to cater to its growing audience.

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